The gas tax hike goes into effect Monday. Here’s how much you’ll pay at the pump (2024)

Editor’s note: To correct an earlier version of this story, a typical driver will pay $184 more in gas taxes than in 2019.

The state gas tax spikes by 2 cents a gallon Monday just in time for the July 4 holiday.

So what do car-dependent suburban drivers think?

“I think it’s terrible,” Marco Mastrino said while stopping at a Lisle Shell station Wednesday.

“With inflation, groceries have gone up too, so it’s a double-edged sword,” said Mastrino of Elmhurst. “You really can’t fight it.”

Likewise, Janet Jachna was unhappy but “what are you going to do? You can’t stop buying gas,” she said at a Naperville Safeway.

Illinois lawmakers doubled the 19-cent motor fuel tax in 2019 to fund a massive capital program and required annual adjustments tied to inflation. On Monday, the rate rises from 45 cents a gallon to 47 cents.

The Illinois Policy Institute reported the state has the second-highest gas taxes in the nation; California comes first. The rate increase means a typical driver will pay $184 more a year in gas taxes than in 2019, hitting low- and middle-income families hardest, the IPI reported.

The gas tax hike goes into effect Monday. Here’s how much you’ll pay at the pump (1)

Illinois gas tax is set to increase on Monday. Some stations, like this one at Golf and Meacham roads in Schaumburg, already are over $4. Paul Valade/pvalade@dailyherald.com

For perspective, Alex Gough, Gov. J.B. Pritkzer’s press secretary said, “when the bipartisan Rebuild Illinois capital plan passed, both Democrats and Republicans agreed to a provisionthat indexed the state’s motor fuel tax annually to inflation.”

“This was done because the state’s infrastructure needs were allowed to fall by the wayside for a decade prior to Gov. Pritzker taking office, so it was decided a stable funding source for the state’s infrastructure needs was necessary to fund ongoing construction.”

In fiscal years 2015 through 2019, the motor fuel tax generated an average of $1.38 billion, according to data from Illinois Comptroller Susana Mendoza’s office. In FY 2020, it jumped to $2.35 billion and to $2.65 billion in FY 2023.

So far, in FY 2024, $2.8 billion has been collected.

Illinoisans face a smorgasbord of federal, state and local gas taxes. For example, DuPage County adds on 9 cents a gallon; Lake collects 4.5 cents.

Back at the Lisle Shell station, college student Padraig O’Donnell, who’s on a limited budget, said “gas is already expensive enough. Every cent it goes up, it continues to dig away at money you don’t spend.”

The gas tax hike goes into effect Monday. Here’s how much you’ll pay at the pump (2)

Tiffany Ruleman of Naperville pumps gas at a Lisle Shell station. The state motor fuel tax increases by 3.5% Monday. Marni Pyke/mpyke@dailyherald.com

Naperville’s Tiffany Ruleman was more philosophical, recalling all-time fuel highs in 2022, when prices spiked to the $5.90 range in the suburbs.

“As long as we don’t hit that threshold again, I think that we can manage,” she said.

Meanwhile, University of Illinois Chicago Urban Transportation Center Director P.S. Sriraj noted “only a handful” of states have indexed gas taxes to inflation.

“At the same time, the (federal) tax per gallon is probably the lowest of any country — that’s something you have to consider,” Sriraj said. The highest rate is in the United Kingdom at $3.49 a gallon compared to 19 cents in the U.S., according to the Department of Energy.

One more thing

Gas prices have ping-ponged around this year and currently sit at an average of $4.17 a gallon in the region, AAA reported.

Why the churn? “We commonly see gas prices fluctuate throughout the summer travel season. As Americans gas up their family vehicles for extended road trips, the increase in fuel demand keeps pressure on supplies,” AAA’s Molly Hart explained.

“Additionally, this time of year, fuel prices can be jolted by hurricanes. The mere threat of a hurricane along the Gulf Coast refinery region (Texas, Louisiana, Mississippi) can lead to concerns about the fuel supply chain, resulting in higher prices.

“Also, in years past, extreme heat has created challenges for refineries, which also caused prices to rise,” Hart said.

You should know

Taking the Green Line to the United Center or Malcolm X College? The Chicago Transit Authority will open a new station at Lake Street and Damen Avenue close to those attractions this summer. Its name is (surprise!) the “Damen Green Line Station,” the CTA announced Tuesday.

Gridlock alert

Have a Plan B when you’re on Milwaukee Avenue in Libertyville. IDOT will close the Milwaukee District North Line crossing for repairs July 8. Detours will be posted and work should finish July 18.

The gas tax hike goes into effect Monday. Here’s how much you’ll pay at the pump (2024)

FAQs

How much will California gas tax go up July 1st? ›

Currently, each gallon includes an additional 58 cents from the state excise tax. However, beginning July 1, this tax will rise to 60 cents per gallon. So, filling up a 12-gallon tank will cost customers about an extra quarter.

How much is the Illinois gas tax going up? ›

Illinois gas tax increase

According to the Illinois Department of Revenue, the tax rate on gasoline at pumps in Illinois will increase by just over 3.5%, rising from $0.454 per gallon to an even $0.47.

Is California raising gas taxes in 2024? ›

California gas tax increase 2024

California continues to lead the nation with the highest gas tax in 2024, which climbs to 69.8 cents per gallon as of July 1. This increase pushes the Golden State's average price for a gallon of regular gasoline to about $4.79.

How many cents per gallon of gas do you pay to the federal government? ›

In addition to the excise tax, California motorists pay a federal fuel tax of 18.4 cents per gallon, and state costs for the low-carbon fuel standard, the cap-and-trade program, state and local sales tax, and the underground storage fee.

How much tax is added to gas in California? ›

California's gas tax officially goes up on Monday. Now, the state's gas tax is 60 cents, whereas it was 58 cents from July 2023 to June 2024, according to the California Department of Tax and Fee Administration. This fee is on top of sales tax and the federal fuel tax for gasoline, which currently sits at 18 cents.

Why is California gas so expensive? ›

"California has its own blend of gasoline, it has very high taxes, and it has a cap-and-trade program," De Haan said. "All of those factor into what you pay at the pump."

How much will a gallon of gas cost in 2024? ›

“Once the proposed amendments are implemented in 2024, they are projected to potentially increase the price of gasoline by an average of $0.37 per gallon,” the report read. That means drivers can expect prices at the pump to hit $5 a gallon by spring and continually see an increase.

When did California gas tax start? ›

1923. California voters approve state gas tax of two cents per gallon.

Will taxes be higher in 2024? ›

The tax inflation adjustments for 2024 rose by 5.4% from 2023 (which is slightly lower than the 7.1% increase the 2023 tax year had over the 2022 rates). In 2024, the top tax rate of 37% applies to those earning over $609,350 for individual single filers, up from $578,125 last year.

Which state has the highest gas tax? ›

In seven places, those state taxes are set to increase at the height of the summer driving season. The list below shows the total state taxes for those spots, effective July 1: California: 69.8 cents per gallon — the highest of all states.

Who benefits from the gasoline tax? ›

As described above, the state's fuel excise taxes raise revenues that support local transportation projects, such as local street and road maintenance and rehabilitation, as well as local‑led highway and transit projects.

How much does the government make on a gallon of gas? ›

How much tax do we pay on a gallon of gasoline and on a gallon of diesel fuel?
GasolineDiesel
Federal18.4024.40
Average of total state taxes32.4434.74

What is the diesel tax in California? ›

Components of California Diesel Price (February 2024)

As can be seen, California-specific taxes and fees increased by 106% from 53 cents per gallon (cpg) in 2014 to 109 cpg in 2022, and again by 8% to 118 cpg in 2024.

Does Missouri tax social security benefits? ›

As of Jan. 1, 2024, Social Security benefits are exempt from state tax, under a law passed in 2023.

References

Top Articles
Latest Posts
Article information

Author: Errol Quitzon

Last Updated:

Views: 5891

Rating: 4.9 / 5 (79 voted)

Reviews: 94% of readers found this page helpful

Author information

Name: Errol Quitzon

Birthday: 1993-04-02

Address: 70604 Haley Lane, Port Weldonside, TN 99233-0942

Phone: +9665282866296

Job: Product Retail Agent

Hobby: Computer programming, Horseback riding, Hooping, Dance, Ice skating, Backpacking, Rafting

Introduction: My name is Errol Quitzon, I am a fair, cute, fancy, clean, attractive, sparkling, kind person who loves writing and wants to share my knowledge and understanding with you.